Analyzing Innergex Renewable Energy (OTCMKTS:INGXF) & Enel (OTCMKTS:ENLAY)

Innergex Renewable Energy (OTCMKTS:INGXF) and Enel (OTCMKTS:ENLAY) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Dividends

Innergex Renewable Energy pays an annual dividend of $0.26 per share and has a dividend yield of 2.6%. Enel pays an annual dividend of $0.26 per share and has a dividend yield of 2.3%. Innergex Renewable Energy pays out 185.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enel pays out 34.2% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Innergex Renewable Energy and Enel, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innergex Renewable Energy	0	0	0	0	0.00
Enel	2	6	1	0	1.89

Risk and Volatility

Innergex Renewable Energy has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Enel has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

Valuation & Earnings

This table compares Innergex Renewable Energy and Enel”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innergex Renewable Energy	$764.31 million	2.69	$11.60 million	$0.14	72.18
Enel	$90.88 billion	1.26	$4.78 billion	$0.76	14.80

Enel has higher revenue and earnings than Innergex Renewable Energy. Enel is trading at a lower price-to-earnings ratio than Innergex Renewable Energy, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Innergex Renewable Energy and Enel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innergex Renewable Energy	5.51%	5.30%	0.76%
Enel	7.91%	12.66%	3.47%

Summary

Enel beats Innergex Renewable Energy on 10 of the 13 factors compared between the two stocks.

About Innergex Renewable Energy

Innergex Renewable Energy Inc. operates as an independent renewable power producer in Canada, the United States, France, and Chile. It acquires, owns, develops, and operates renewable power-generating and energy storage facilities primarily in hydroelectric, wind, and solar power sectors. The company operates through three segments: Hydroelectric Power Generation, Wind Power Generation, and Solar Power Generation. As of February 21, 2024, it owned and operated 87 facilities with a net installed capacity of 3,600 megawatts, including 41 hydroelectric facilities, 35 wind facilities, 9 solar facilities, and 2 battery energy storage facilities. The company is headquartered in Longueuil, Canada.

About Enel

Enel SpA operates as an integrated operator in electricity and gas industries worldwide. It generates, distributes, transmits, and sells electricity; transports and markets natural gas; and constructs and operates generation plants and distribution grids. The company also provides energy management services; e-vehicle charging infrastructure for public and private customers; and engages in the energy commodities business. It operates wind, thermal, hydroelectric, nuclear, solar photovoltaic, and geothermal power plants. The company was founded in 1962 and is headquartered in Rome, Italy.